TIAA-CREF Higher Education Survey Summary of Results

Retirement Landscape

2. Thinking back 10 years ago, at what age did you think you would retire?

Higher Education (N=727)

General Population (N=1,000)

Under 65

26%

32%

65

30%

32%

66-68

17%

13%

69-70

9%

7%

Over 70

7%

5%

Never

2%

3%

I don’t know

9%

9%

3. How would you compare your retirement savings and planning behavior compared to your peers? Would you say your retirement savings and planning behavior is…

Higher Education (N=727)

General Population (N=1,000)

NET: More diligent

53%

56%

Much more diligent

17%

20%

More diligent

36%

35%

About the same

35%

32%

NET: Less diligent

12%

12%

Less diligent

10%

9%

Much less diligent

2%

3%

Retirement Plan Loans

4. Have you ever taken a loan from the savings in your retirement plan?

Higher Education (N=727)

General Population (N=1,000)

Yes

16%

29%

No

84%

71%

5. [If yes] How much of your savings did you borrow?

Higher Education (N=117)

General Population (N=285)

10% or less

30%

26%

11-20%

19%

23%

21-30%

12%

17%

31-40%

15%

13%

41-50%

10%

8%

More than 50%

7%

9%

Not sure

6%

4%

6. [If yes] Did you decrease your contribution rate while you were paying back the loan?

Higher Education (N=117)

General Population (N=285)

Yes, I contributed 75% or more of what I’d contributed previously

9%

19%

Yes, I contributed 50% to less than 75% of what I’d contributed previously

17%

17%

Yes, I contributed 25% to less than 50% of what I’d contributed previously

11%

10%

Yes, I contributed 25% or less of what I’d contributed previously

1%

6%

Yes, I stopped contributing entirely while I paid back my loan

8%

5%

No, I kept the same rate of contribution while making loan payments

54%

43%

7. [If yes] Which of the following best describes how you feel about taking out the loan on your 401(k) or 403(b)?

Higher Education (N=117)

General Population (N=285)

I regret it and would not do it again

21%

21%

I regret it but would do it in the future

21%

23%

I don’t regret it but would not do it again

27%

23%

I don’t regret it and would consider doing it again in the future

31%

33%

Retirement Plan Matching Contributions

8. Does your employer offer a matching incentive where if you contribute to the retirement plan they match all or a percentage of your contribution?

Higher Education (N=727)

General Population (N=1000)

Yes

73%

78%

No

22%

17%

I don’t know

5%

5%

9. [If yes] What percentage of your salary will your employer match?

Higher Education (N=533)

General Population (N=780)

Less than 1%

3%

1%

1-4%

20%

39%

5-8%

43%

34%

8-12%

23%

10%

More than 12%

4%

9%

I don’t know

7%

7%

10. [If yes] How much of your contribution does your employer match?

Higher Education (N=533)

General Population (N=780)

0-25% of my contribution

23%

27%

26-50% of my contribution

13%

23%

51-75% of my contribution

8%

13%

76-99% of my contribution

6%

6%

All of my contribution

40%

23%

I don’t know

9%

9%

11. [If yes] Do you contribute the maximum amount that your employer will match?

Higher Education (N=533)

General Population (N=780)

Yes

82%

77%

No

13%

20%

I don’t know

5%

3%

Retirement Plan Enrollment

12. Did your current employer automatically enroll you in the company’s 401(k) or 403(b) retirement savings plan?

Higher Education (N=727)

General Population (N=1000)

Yes

44%

44%

No

50%

53%

I don’t know

6%

3%

13. [If no] How long did you wait before enrolling in the plan?

Higher Education (N=404)

General Population (N=556)

Less than 3 months

54%

41%

3 months to less than 6 months

8%

15%

6 months to less than 1 year

10%

13%

1 year to less than 2 years

10%

14%

2 years or more

13%

10%

I don’t know

6%

7%

14. [If no] Which of the following, if any, had an impact on your decision to enroll in the plan? Please select all that apply.

Higher Education (N=404)

General Population (N=556)

Printed materials from your employer

32%

31%

Conversation with friends or family

26%

31%

Conversation with HR or benefits administrator

30%

23%

Printed materials from your retirement provider

20%

20%

Conversation with advisor or other representative from retirement provider

16%

20%

None of these

18%

17%

Email from your employer

11%

10%

Online tool or calculator

6%

10%

Other

13%

9%

Email from your retirement provider

5%

5%

Transitioning to Retirement

15. What will be the most important factor in determining when you retire?

Higher Education (N=727)

General Population (N=1000)

Financial readiness

52%

52%

Health

15%

22%

Mandatory retirement age

4%

7%

No longer feeling engaged at work

15%

18%

Desire to pursue new interests

11%

10%

16. What are you most looking forward to about retirement?

Higher Education (N=727)

General Population (N=1000)

Travel

27%

24%

Time with friends and family

14%

15%

Hobbies

4%

8%

Volunteer work

3%

4%

Flexibility to do what I want, when I want

44%

44%

I’m not looking forward to it

6%

2%

Other

2%

1%

17. What steps have you taken already to prepare for retirement? Please select all that apply.

Higher Education (N=727)

General Population (N=1000)

Calculated how much income you will need every year in retirement

31%

28%

Purchased an annuity

12%

9%

Saved in an IRA

42%

34%

Purchased long-term care insurance

15%

11%

Saved in a healthcare savings account

14%

12%

Consolidated your retirement savings in one account

11%

11%

Met with a financial advisor

36%

22%

Asked your employer for help

3%

5%

Asked your friends and family for help

6%

9%

Investigated the possibility of part-time or consulting work

19%

15%

Made plans to spend more time with new or current hobbies

14%

12%

Researched travel or other leisure activities

18%

12%

Researched or visited new places to live

14%

14%

Other

5%

4%

None

13%

16%

18. How will your lifestyle in retirement be different than it is today? Please select all that apply.

Higher Education (N=727)

General Population (N=1,000)

I will be working part-time

37%

31%

I will do more volunteer work

37%

21%

I will spend more conservatively for entertainment and other non-necessities

31%

36%

I will travel more inside and outside the US

54%

43%

I will downgrade my living quarters to something smaller and less costly

31%

25%

Other

9%

6%

None of the above

6%

9%

19. [Among Respondents Age 55-64] As you approach retirement, what do you wish you had done differently when you were younger? Please select all that apply.

Higher Education (N=179)

General Population (N=140)

Started saving for retirement sooner

45%

52%

Saved more of my salary for retirement

35%

47%

Lived a more moderate lifestyle

14%

9%

Spent more time with my family

16%

14%

Taken less time out from my career to care for children or aging parents

2%

2%

Worked more diligently to advance in my career for higher-paying positions

15%

9%

Worked with a financial advisor to help me save more intelligently

20%

18%

Invested my retirement savings more conservatively

6%

9%

Invested my retirement savings more aggressively

25%

34%

Other

6%

6%

None

18%

6%

TIAA-CREF Survey Methodology

TIAA-CREF’s Higher Education Survey was conducted among a sample of 727 adults currently contributing to an employer-sponsored retirement plan, conducted by KRC Research, an independent research firm. The survey was conducted between May 19 and June 16, 2014.

Statistics about the general population of adults come from a TIAA-CREF survey, also conducted by KRC Research, which polled a random sample of 1,000 adults nationwide with an employer-sponsored retirement plan. The survey was conducted between May 19 and May 28, 2014. Data was weighted by key demographic variables to ensure the sample is representative of the employed population contributing to defined-contribution plans. Participants in each survey were asked identical questions.

Respondents for these surveys were selected from among those who have volunteered to participate in online surveys and polls. Because the samples are based on those who initially self-selected for participation, no estimates of sampling error can be calculated. All sample surveys and polls may be subject to multiple sources of error, including, but not limited to, sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options.

The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results. Results experienced by one individual may not be typical of all participants. Individual results and experiences will vary.

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

‡Deposit and lending products and services are provided by TIAA Bank®. TIAA Bank is a division of TIAA, FSB, an Equal Housing Lender and Member FDIC. TIAA, FSB NMLS ID: 399805.

The TIAA group of companies does not provide legal or tax advice. Please consult your legal or tax advisor.

TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC , distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each of the foregoing is solely responsible for its own financial condition and contractual obligations.

Teachers Insurance and Annuity Association of America is domiciled in New York, NY, with its principal place of business in New York, NY. Its California Certificate of Authority number is 3092.

TIAA-CREF Life Insurance Company is domiciled in New York, NY, with its principal place of business in New York, NY. Its California Certificate of Authority number is 6992.